Maine to Conform to Federal Tsunami Relief Contribution Provisions

On January 7, 2005, federal PL 109-1 was enacted to allow taxpayers who itemize deductions to include on their 2004 federal tax return certain charitable contributions made during January 2005 specified for tsunami relief. As a result, many taxpayers who donate money during January 2005 to charities to aid tsunami victims can choose to deduct those contributions on either their 2004 or 2005 federal income tax return. Previously, donors making gifts during January 2005 could not deduct those donations for 2004.

The Governor has submitted legislation that will result in conformity with the federal provision, thereby allowing Maine taxpayers to include in 2004 Maine itemized deductions tsunami relief contributions made during January 2005 that are also included in federal itemized deductions.

For more information on allowable contributions affected by PL 109-1, see the Internal Revenue Service web site at www.irs.gov.

This publication is designed to keep taxpayers, tax practitioners and the general public informed of developments, problems, questions and matters of general interest concerning Maine tax law, policy and procedure. The articles in this newsletter are not designed to address complex issues in detail, and they are not a substitute for Maine tax laws and/or regulations